The antitrust complaint against Google from the Texas Attorney General (and 9 other states) is out!
This case focuses on the online advertising market (as opposed to the DOJ's focus on the search market).
Thread with some of my initial reactions as I go through it...
This case focuses on the online advertising market (as opposed to the DOJ's focus on the search market).
Thread with some of my initial reactions as I go through it...
Ugh, the complaint completely misunderstands how targeted advertising works.
It alleges that Google is lying when it says it doesn't sell user data to anyone. But that's true!
Targeted advertising works without sharing personally identifiable data. This is basic stuff.
It alleges that Google is lying when it says it doesn't sell user data to anyone. But that's true!
Targeted advertising works without sharing personally identifiable data. This is basic stuff.
This section contradicts what we know about the digital ad market.
It says that Google is the "controlling node & central authority for online advertising" & its "monopoly tax" leads to higher prices.
But Google's market share is 29%.
And prices have fallen 40% in last decade.
It says that Google is the "controlling node & central authority for online advertising" & its "monopoly tax" leads to higher prices.
But Google's market share is 29%.
And prices have fallen 40% in last decade.
If online ads have "largely supplanted their traditional print, radio, and television counterparts" then that means they're substitutable goods... which means the "online display ads" market definition is way too narrow and doesn't reflect economic reality.
This is a big problem for these types of cases.
A complaint can't both say that Google has decimated legacy advertising and that Google has become a monopoly in digital advertising.
The first statement implies that the relevant market is actually both physical and digital ads.
A complaint can't both say that Google has decimated legacy advertising and that Google has become a monopoly in digital advertising.
The first statement implies that the relevant market is actually both physical and digital ads.
"Some publishers have inventory on hundreds of thousands, or even hundreds of millions, webpages, which makes switching ad servers exceedingly expensive"
Uh, they get that this stuff is automated, right? The marginal cost of managing ad inventory on an additional webpage is zero
Uh, they get that this stuff is automated, right? The marginal cost of managing ad inventory on an additional webpage is zero
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